Market Round -Up for the week ended 020922 – First Ideas Limited

Market Round -Up for the week ended 020922

Market Round-up for the Week Ended 020922

Key Highlights

  • The equities market recorded Mixed performance – the listed equities market, NGXASI, recorded a +0.63% gain WoW and the NASD OTC closed positive with a +0.16%
  • The IEFX rate closed positive and the NAFEX rate closed positive.
  • The BDC rates closed flat.
  • The Brent Crude Oil price and WTI Crude Oil price moved down at the end of the week.
  • The FMDQ Debt Market Size closed negative
  • AFEX ACI and AEI closed negative.
  1. Equity

NSE                                                                                                  

  • The NGXASI inched up by +0.73% W-o-W. On top gainer and loser sector indices, NSE MERIVAL sectors closed positive with +41%, while NSE GROWTH closed negative with -0.51%W-o-W.
  • During the week, the Gote Index closed positive with +0.11% while the Toni Index closed positive by +1.55% W-o-W.

 

Market Performance 
Sectors 26-Aug-22 02-Sep-22 WoW Chg
NGX ASI 49,682.15 50,045.83 0.73%
NSE-30 1,772.42 1,784.67 0.69%
NSE Consumer Goods 591.51 603.38 2.01%
NSE Banking 384.55 389.22 1.21%
NSE Insurance 180.70 180.79 0.05%
NSE Oil and Gas 530.15 533.59 0.65%
NSE LII 3,070.65 3,093.55 0.75%
NSE-IND 1,770.60 1,794.65 1.36%
NSE-ASeM 658.99 658.99 0.00%
NSE Pension 1,697.10 1,714.89 1.05%
NSE Premium 4,476.61 4,485.87 0.21%
NSE Main Board 2,286.02 2,311.16 1.10%
NSECG 1,217.54 1,225.54 0.66%
NSEAFRBVI 889.02 901.06 1.35%
NSEAFRHDYI 3,026.84 3,048.22 0.71%
NSEMERIGRW 2,210.29 2,216.82 0.30%
NSEMERIVAL 2,055.91 2,105.56 2.41%
NSEGROWTH 1,673.86 1,665.26 -0.51%
Dangote Index 128.25 128.39 0.11%
Elumelu Index 106.78 108.44 1.55%

Source: NSE

 

NASD                                   

The NASD USI closed positive with a +0.16% gain W-o-W

Market CAP closed positive with a +0.16% gain W-o-W

Parameter 26-Aug-22 02-Sep-22 WoW Chg
USI                                  760.92                                   762.12 0.16%
MKT Capitalization (Bn)                               1,001.69                               1,003.27 0.16%
Volume Traded                          198,914.00                           21,900.00 -88.99%
Value Traded (000)                      4,953,431.00                         753,550.00 -84.79%
Deals Executed                                      9.00                                      8.00 -11.11%

Source: NASD Plc

Debt Market Size

The FMDQ Debt Market Size moved up by +0.76% to close at N29.26trn

Debt Market Size as @ AUGUST 19, 2022
Index 02-Sep-22 26-Aug-22 % Chg
Debt Market Size 29.26 29.04 0.76%

 

  1. Commodities

Brent crude oil prices moved down by -4.86% W-o-W to $94.54 per barrel.

WTI moved down by -3.86% W-o-W to $88.64 per barrel as of the time of writing this report. (5.36pm)

 

 

Commodity 22-Sep-22 26-Aug-22 31-Dec-21 Weekly Chg YTD Chg
Brent 94.54 99.37 78.53 -4.86% 20.39%
WTI 88.64 92.2 75.89 -3.86% 16.80%
Gold 1725.4 1748.8 1827.5 -1.34% -5.59%
Silver 18.03 18.725 23.265 -3.71% -22.50%
Platinum 823.3 855.1 958 -3.72% -14.06%
Palladium 2029.5 2115 1883.5 -4.04% 7.75%
CNBC,

 

 AFEX Indices

ACI moved down by -1.34% W-o-W to close at 439.14 and the AEI moved down by -1.15% W-o-W to close at 185.29

Afex Indices
Index 02-Sep-22 26-Aug-22 % Chg
ACI 439.14 445.12 -1.34%
AEI 185.29 187.44 -1.15%

 

AFEX Commodities

Maize remained flat to close at N193.7 and Paddy Rice moved up by +3.13% to close at N252.9

Afex Commodity Prices
Commodities 02-Sep-22 26-Aug-22 % Chg
Maize 193.7 193.7 0.00%
Sorghum 298.65 295.54 1.05%
Cashew 689.88 689.88 0.00%
Cocoa 1193.33 1193.33 0.00%
Ginger 1020.64 1020.64 0.00%
Sesame 800 800 0.00%
Soybeans 391.89 391.89 0.00%
Paddy rice 260.81 252.9 3.13%
Wheat 380 380 0.00%

Source: AFEX

 

  1. Forex

The NAFEX closed positive and the IEFX rates closed positive.

BDC Rate closed flat

FX 02-Sep-22 26-Aug-22 % Chg 31-Dec-21 YTD Chg
I & E 431.5 430.05 -0.34% 435 +0.80%
BDC 700 700 0.00% 568 -23.24%
NAFEX 428.9 428.44 -0.11% 414.45 -3.49%
Source: FMDQ, CBN, Everdon

 

Fidelity Bank Plc Posts Impressive H1 2022 Results as Profits Hits N25.1bn

Leading financial institution, Fidelity Bank Plc, has released its H1 2022 results recording a remarkable 21.6% growth in profit to N25.1bn as well as decent growth in most key ratios.

 

According to the report released on the Nigerian Stock Exchange (NGX) on Tuesday, 30 August 2022, the bank grew Total Deposits by 13.1% YTD to N2,290.1bn from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 26.1% YTD to N1,902.4bn and now represents 83.1% of total deposits from 74.5% in 2021FY, which explains the drop in funding cost.

 

“We are delighted with our H1 2022 performance which showed strong growth across key performance indices. With improved efficiency and customer experience around our network, customer transactions have grown considerably as we optimize our balance sheet and build up a large stock of stable low-cost deposits”, stated Fidelity Bank’s CEO, Mrs. Nneka Onyeali-Ikpe.

 

Gross Earnings increased by 37.9% YoY to N154.8bn on account of 52.9% growth in interest income to N136.2bn from N89.1bn in H1 2021. The increase in Interest Income was driven by improved yield on earnings assets and 14.9% YTD expansion in earnings base to N2,546.5bn.

Similarly, Net Interest Margin improved to 6.4% from 4.7% in 2021FY, due to a combination of improved yields on average earning assets and a decline in average funding cost. Average yields on earning assets increased by 211bps YoY to 11.5% while average funding cost declined by 84bps to 4.0% YoY, which resulted in 50.4% growth in net interest income to N75.6bn.

 

The release of the half year results coincides with the bank’s recent announcement on expanding to the United Kingdom with its proposed purchase of Union Bank UK.

 

Commenting on the proposed acquisition, Onyeali-Ikpe said: We recently executed a binding agreement for the acquisition of 100.0% equity stake in Union Bank UK Plc in line with our strategic objectives and business expansion drive. Union Bank UK offers a compelling synergy we hope to build on, to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.

 

On the back of the positive H1 2022 performance, the board of fidelity bank approved an interim dividend of 10k per share, making it the first time the bank will pay an interim dividend in its 34years history.

 

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

 

About the Author

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First Ideas Limited is an investment and financial advisory company established in 1994 to provide advisory services to high net worth individuals, trust funds, financial institutions and medium sized companies in growth sectors.

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